The inevitable fate of corporate bonds; the day comes to show it are emptied bags

Corporate bonds are bought by investors for the purpose to supplement their income. Bonds are an important category of the fixed income market. This is a good  time to take a look at why companies are borrowing money by selling bonds. The graph below shows in the first quarter of 2020 there’s an execrated phase … Continue reading The inevitable fate of corporate bonds; the day comes to show it are emptied bags

The madness of ‘zero sum game’ world

Ongoing government and central bank interventions has transitioned the economy and financial markets into zero sum games. It means that profits are private but losses and risks are transferred to the public. Profits are made at a high cost, by putting society in a position of  disadvantage. These are no longer markets based on exchange … Continue reading The madness of ‘zero sum game’ world

The Dollar deflation myth unraveled; a big picture view

For years I’ve been listening to deflationists, a narrative that is especially popular under dollar bulls. The deflation narrative makes little to no sense to me. In this blog I’ll explain why deflationist Dollar bulls could be wrong. Deflationists do think that there will be a 1929 - 1933 type of deflationary crisis again some … Continue reading The Dollar deflation myth unraveled; a big picture view

What is next? Thoughts on the Central Bank Chess Game

Central Banks want inflation while pumping up the stock and bond market. If you are looking for inflation, look there. My best guess is that they know damn well that inflation won’t stay there. If they did homework, they have learned from 2008.  Central Banks wanted inflation and they got it, but not where they … Continue reading What is next? Thoughts on the Central Bank Chess Game